'Beware Of Overpricing' In Denver

Several realtors in the Denver area agree about the buyers market. "Yes, we faced a housing price bubble throughout the years 2000 and 2001. However the bubble never burst but rather slowly deflated over the past several years. Pricing a home right is imperative in today's market. Homeowners that over price their homes are hurting themselves in today's market. If your home is over priced a buyer and/or a Buyer's Agent will know it and they may be angry that they wasted their time. BEWARE of over pricing!" "The Denver Metro area is experiencing an abundance of lender owned properties, helping to make this a very strong Buyer's market. As an investor, there are lots of deals to be done. If you are a home Seller, this market can be challenging. Well-priced homes still sell, but the Buyer is looking for a home with improvements at a reasonable price or a home which needs improvements at a rock-bottom price. Over-priced homes are not going anywhere!" "The real estate market in Denver remains a Buyers market. Going into the first week of January, 2006, there are 16,108 single family homes and 6,256 condos/townhomes on the market. If you are thinking of selling your house, don't be alarmed by the high number of lisings. Homes that are kept in good shape and are priced closer to the market than their competition, will be the first ones to sell." "'I think it says the housing market hasn't collapsed, but it's a sluggish market, particularly in terms of prices,' said Tucker Hart Adams, a regional economist in Denver. 'I think the parts of the country that are seeing these double-digit increases are just headed for problems down the road.'" "Another big concern is the 12.8 percent increase in inventory over last year. At the end of December, there were 23,572 active listings, a number that is expected to rise with interest rates." "Denver's real estate 'bubble' occurred in the '90's, with double-digit appreciation 'from 1996 to 2000 before dropping to 2 percent through 2003,' according to Gary Bauer, independent Denver real estate analyst. Values began a correction in 2001 and continued through 2005, with overpriced homes staying on the market longer and selling at a lower price than overzealous sellers expected." "The Sold Homes are on the market an average of 80 days in Jefferson County, in the last quarter of 2005 there were 408 homes sold per month. There are 2,276 homes currently for sale, so that means buyers have a five month supply of homes to choose from which has kept us in a buyers market. As the job market recovers we will see the market balance out."